Spain Data Center Market Size & Share Analysis - Growth Trends and Forecast (2026–2031)

Spain Data Center Market - Investment Analysis & Growth Opportunities 2026-2031

SPAIN DATA CENTER MARKET SIZE ANALYSIS

The Spain data center market size was valued at USD 3.35 billion in 2025 and is expected to reach USD 8.83 billion by 2031, growing at a CAGR of 17.55% during the forecast period. Spain holds a significant market share of the data center market in Western Europe. It is driven by factor such as the growing adoption of digital platforms, adoption of cloud, adoptionof advanced technologies such as AI, IoT, and big data, the digital economy, expanding 5G network connectivity, increasing internet users and data traffic, government initiatives, and the rising growth in mobile and social media users: these factors are expected to enhance data traffic and the demand for data centers significantly.

Spain data center market is witnessing investment from both global and local data center operators. For Instance, in September 2025, Vantage Data Centers announced its plan to develop a data center campus in Villanueva de Gállego, near Zaragoza, in Aragón, Spain, with a total investment of around $3.71 billion. Additionally, the data center campus will be developed in five phases over around 10 years, and it will span around 40 hectares of industrial land.

As of February 2026, the country hosts around 30 operational submarine cables such as 2Africa, Africa Coast to Europe (ACE), Alpal-2, Balalink, Canalink, DOS CONTINENTES l & ll, Est-Tet, Grace Hopper, MAREA, Penbal-5, Subcan Link 1, Tenerife-Gran Canaria, TRANSCAN-2, and West Africa Cable System (WACS). Additionally, the country continues to witness investments in around five more new submarine cables, which are expected to become operational by 2028.

In Spain, we observe that data center operators are signing renewable energy Power Purchase Agreements (PPAs) for their data center facilities. For instance, in April 2025, nLighten announced the signing of a long-term Power Purchase Agreement (PPA) with Shell Spain to provide renewable energy for its MAD1 data center in Madrid.

SPAIN DATA CENTER MARKET - KEY HIGHLIGHTS

1. In 2025, we observe that data center organizations in Spain are building high-megawatt campuses to continuously increase the demand for digitalization across all sectors in Spain. Form8tion Data Centers, Nostrum Group, QTS (Blackstone), Solaria Edged Energy & Merlin Properties, Echelon Data Centres, SAMCA Group, Sierra DC, among others, are building data center campuses with capacities of more than 100 MW. These development initiatives clearly indicate that the market share of large colocation facilities is expected to grow significantly during the forecast period.
2. The country is witnessing the development of an AI- ready data center across the nation. For instance, in December 2025, EdgeMode announced the securing of power for its AI-focused data center platform in Spain. Additionally, the project is being developed in a joint venture with Blackberry Alternative Investment Fund (BAIF), in partnership with Blackberry Alternative Investment Fund; it will consist of five campuses, with a combined power capacity of around 1.5 GW.
3. The country is undergoing significant advancements in submarine and inland connectivity, with substantial investments. For instance, in July 2025, Google announced its plan to develop the new Sol subsea cable between Spain and the US. Additionally, the cable connects the US, Bermuda, the Azores, and Spain.
4. In 2025, the Spain data center market is increasingly prioritizing sustainability; we observe that many data center operators are investing in energy-efficient infrastructure and renewable energy sources. Data centers are adopting green practices such as using solar and wind energy, implementing advanced cooling technologies and optimizing power usage effectiveness (PUE).
5. In November 2025, Templus announced the initiation of the construction of a new data center facility in Ceuta, Spain. The facility will cover an area of around 26,910 square feet; it will initially offer a power capacity of 1.2 MW, with plans to expand up to 2.4 MW in a later phase. It is expected to become operational by mid-2026 and will be powered entirely by renewable energy.

SPAIN DATA CENTER MARKET TRENDS

AI-Based Investment Across Spain

1. The adoption of AI in the Spanish data center industry is growing rapidly as companies increasingly use AI to optimize operations and drive innovation in the digital infrastructure sector.
2. In March 2026, Amazon Web Services (AWS) announced its plans to expand its AI data center infrastructure in the region of Aragón, Spain. The total investment is expected to reach around $39.5 billion, including an additional $21 billion in new funding.
3. In October 2025, Sierra DC announced its plan to develop a large AI data center in Escúzar, Granada, with a total investment of around $1.16 billion.

Adoption of Liquid Cooling Technologies

1. The Liquid cooling adoption is expected to increase rapidly in Spanish data centers as this technology offers superior heat management, enhanced performance, and high scalability for next-gen technologies.
2. AQ Compute invested to install liquid cooling solutions for high-density racks in its AQ-BCN data center facility in Barcelona, Spain
3. In December 2024, AWS introduced hybrid cooling systems, combining air and direct-to-chip liquid cooling, to efficiently manage the high power and thermal demands of AI workloads in all its data center facilities; this supports advanced processors such as Trainium2 and Nvidia GB200 NVL72.

SPAIN DATA CENTER MARKET RESTRAINTS

Power Availability & Network Outage Challenges in the Market

1. Power availability and network outages are critical challenges in the data center market, driven by increasing energy demands, aging infrastructure, and rising data traffic volumes.
2. The January 3^rd, 2025, outage at Orange Spain was caused by a weak password, with half of the company’s network traffic being disrupted when its internet infrastructure was manipulated by a breached RIPE account.
3. In 2024, Microsoft’s global outage affected several Azure and Microsoft 365 services in response to a DDoS attack, leading to spikes in usage, timeouts, and latency across impacted services such as Azure App Services and Microsoft Purview.

Water Scarcity Challenges in the Market

1. Water scarcity in Spain has become a significant concern, particularly in regions including the south and southeast, which are facing prolonged droughts due to climate change and increasing water demand.
2. Spain’s water resources are facing scarcity owing to population growth, agricultural demands, and climate variability; this is leading to lowered water levels in reservoirs and rivers. This scarcity has a profound impact on various industries, including data centers, which rely heavily on water for cooling purposes.
3. Spain’s government has approved the Third Cycle Hydrological Plans, with an investment of over $24.84 billion, to modernize water resource management by 2027.

MARKET SEGMENTATION INSIGHTS

1. Rapid digitization in Spain has created a strong demand for cloud-based services in the country. The IT and telecom industries are leading the charge in cloud computing adoption, with substantial momentum being witnessed in manufacturing, logistics, healthcare and government agencies.
2. Data centers in Spain are implementing Uninterruptible Power Supply (UPS) systems with N+1 and 2N redundancy configurations to maintain operational stability during outages. Additionally, they are increasingly adopting advanced backup generators with N+1 redundancy configurations to ensure uninterrupted operations and enhance energy resilience.
3. In Spain, data center facilities utilize both chilled water and air-based cooling systems. Most operators implement N+1 redundancy for Tier III facilities to ensure reliability. For example, Digital Realty's MAD1 data center features N+1 redundant chillers to support its mechanical infrastructure.
4. As of 2025, the average power density per rack in the market has increased to approximately 8 kW to 10 kW. This figure is expected to rise to around 12 kW to 14 kW per rack, driven by investments from hyperscale data centers. The increasing rack densities in data centers are largely due to the growing demand for higher computing and storage capabilities in smaller spaces, spurred by advancements in artificial intelligence (AI) and machine learning (ML) workloads, as well as improvements in cooling and power management technologies.

WHY SHOULD YOU BUY THIS RESEARCH?

1. Market size available in the investment, area, power capacity, and Spain colocation market revenue.
2. An assessment of the data center investment in Spain by colocation, hyperscale, and enterprise operators.
3. Data center investments in the area (square feet) and power capacity (MW) across cities in the country.
4. A detailed study of the existing Spain data center market landscape, an in-depth industry analysis, and insightful predictions about the Spain data center market size during the forecast period.
5. Snapshot of existing and upcoming third-party data center facilities in Spain
6. Facilities Covered (Existing): 67
7. Facilities Identified (Upcoming):49
8. Coverage: 20+ Locations
9. Existing vs. Upcoming (Data Center Area)
10. Existing vs. Upcoming (IT Load Capacity)
11. Data center colocation market in Spain
12. Colocation Market Revenue & Forecast (2022-2031)
13. Retail & Wholesale Colocation Revenue (2022-2031)
14. Retail & Wholesale Colocation Pricing
15. Spain data center landscape market investments are classified into IT, power, cooling, and general construction services with sizing and forecast.
16. A comprehensive analysis of the latest trends, growth rate, potential opportunities, growth restraints, and prospects for the industry.
17. Business overview and product offerings of prominent IT infrastructure providers, construction contractors, support infrastructure providers, and investors operating in the industry.
18. A transparent research methodology and the analysis of the demand and supply aspect of the market.

SPAIN DATA CENTER MARKET VENDOR LANDSCAPE

1. Some of the major colocation data centers in Spain include AtlasEdge, CyrusOne, Equinix, Digital Realty, Data4, Global Switch, Iron Mountain, Merlin Properties, Nabiax, NTT DATA, and Templus.
2. The cloud market in Spain is expected to continue experiencing significant growth in the forecast period. The major global cloud providers, such as Amazon Web Services (AWS), Microsoft, Google, IBM Cloud, and Oracle Cloud, have dedicated cloud regions in the country, and companies are continuing to expand their presence across the country. For instance, in March 2026, Amazon Web Services (AWS) announced its plans to expand its AI data center infrastructure in the region of Aragón, Spain. This expansion aims to support the growing demand for cloud computing and Artificial Intelligence (AI) services through the AWS cloud platform.
3. The Spain data center market has the presence of several major IT infrastructure vendors, including Arista Networks, Atos, Cisco, Dell Technologies, Fujitsu, Hewlett Packard Enterprise, NVIDIA, among others.
4. In July 2025, Real Madrid, a professional football (soccer) club, and Cisco planned to build an AI-ready data center at the club’s Real Madrid City training campus. Additionally, Cisco will deploy 100 Gbps network infrastructure to connect the Santiago Bernabéu stadium to Real Madrid City; furthermore, the company will install Cisco Wi-Fi7 across the campus to improve speed, latency, and connectivity.
5. The Spain data center market has the presence of global as well as local data center construction contractors & sub-contractors, including ACS Group, Arup, ARSMAGNA GROUP, CapIngelec, Ramboll, Ferrovial, IDOM, ISG, Hill International, Mercury, PQC, Quark Unlimited Engineering among others.
6. In Spain, support infrastructure companies, such as Vertiv, STULZ, and Schneider Electric, offer advanced liquid cooling solutions to data centers across Spain to support efficient heat management.

EXISTING VS. UPCOMING DATA CENTERS

1. Existing Facilities in Spain (Area and Power Capacity)
2. Madrid
3. Other Cities
4. List of Upcoming Data Center Facilities in Spain (Area and Power Capacity)
5. Madrid
6. Other Cities

REPORT COVERAGE:

This report analyses the Spain data center market share. It elaboratively analyses the existing and upcoming facilities and investments in IT, electrical, mechanical infrastructure, cooling systems, general construction, and tier standards. It discusses market sizing and investment estimation for different segments. The segmentation includes:

1. IT Infrastructure
2. Server Infrastructure
3. Storage Infrastructure
4. Network Infrastructure
5. Electrical Infrastructure
6. UPS Systems
7. Generators
8. Switches & Switchgears
9. PDUs
10. Other Electrical Infrastructure
11. Mechanical Infrastructure
12. Cooling Systems
13. Rack Cabinets
14. Other Mechanical Infrastructure
15. Cooling Systems
16. CRAC and CRAH
17. Chillers
18. Cooling Towers, Condensers and Dry Coolers
19. Other Cooling Units
20. General Construction
21. Core & Shell Development
22. Installation & commissioning Services
23. Building & Engineering Design
24. Fire Detection & Suppression Systems
25. Physical Security
26. Data Center Infrastructure Management (DCIM)
27. Tier Standard
28. Tier I & Tier II
29. Tier III
30. Tier IV
31. Geography
32. Madrid
33. Other Cities

DATA CENTER PROVIDERS/INVESTORS IN SPAIN

1. IT INFRASTRUCTURE PROVIDERS: Arista Networks, Atos, Broadcom, Cisco, Dell Technologies, Fujitsu, Hewlett Packard Enterprise, IBM, Lenovo, and NVIDIA.
2. DATA CENTER CONSTRUCTION CONTRACTORS & SUB-CONTRACTORS: ACS Group, AEON Engineering, Arup, ARSMAGNA GROUP, CapIngelec, Ramboll, Ferrovial, IDOM, ISG, Hill International, Mercury, PQC, and Quark Unlimited Engineering.
3. SUPPORT INFRASTRUCTURE PROVIDERS: ABB, Caterpillar, Cummins, Delta Electronics, Eaton, GESAB, Legrand, Pillar Power Systems, Rittal, Rolls-Royce, Schneider Electric, STULZ, and Vertiv.
4. DATA CENTER INVESTORS: Adam - Data Center, Aire, AtlasEdg, Box2bit, CyrusOne, Data4, Digital Realty, EdgeConneX, Equinix, Global Switch, Iron Mountain, Merlin Properties, Microsoft, Nabiax, NTT DATA and Templus
5. NEW ENTRANTS: AQ Compute, AVAIO Digital, Best Wonder Business (BWB), DAMAC Digital, Echelon Data Centres, EdgeMode, Form8tion Data Centers, Global Technical Realty (GTR), Ingenostrum, Meta, NETHITS IT SOLUTIONS, Nostrum Group, NXN Datacenters, Panattoni, Prime Data Centers, Pure Data Centres, QTS Data Centers, Sierra DC

MARKET DEFINITIONS

1. Investment — total capital deployed across IT, electrical, mechanical, and general construction infrastructure for a data center facility, measured in USD.
2. Area (White Floor Space) — the usable raised-floor area allocated to IT equipment within a facility, measured in square feet.
3. Power Capacity — the total IT load a facility is designed to support, measured in megawatts (MW).
4. Tier Standard — the Uptime Institute classification (Tier I–IV) describing a facility's redundancy and fault tolerance.
5. Colocation Type — retail colocation serves tenants requiring smaller rack or cage footprints; wholesale colocation serves tenants leasing dedicated suites or halls.

RESEARCH METHODOLOGY

1. Primary Research: Interviews/interactions with data center developers, colocation providers, contractors, system integrators, and infrastructure providers.
2. Secondary Research: Analysis of annual reports, financial filings, press releases, data sheets, white papers, industry blogs, and tender documents.
3. Historical Period: 2022–2024
4. Base Year: 2025
5. Forecast Period: 2026–2031
6. Approach: Market data is validated using primary industry inputs and secondary sources, with 2025 representing actual values and 2026–2031 representing forecast estimates.